Trump Signs Susan Collins’ Legislation Banning Pharmacy ‘Gag’ Rules

Win McNamee/Getty Images North America

WASHINGTON (AP) — Insurers will no longer be able to bar pharmacists from telling consumers when paying cash would be cheaper than using insurance for their prescriptions, as a result of bills signed Wednesday by President Donald Trump.

The two bills had broad bipartisan support as a consumer-friendly move to correct “gag rules” that many viewed as an egregious business practice. One bill applies to private health insurance and the other to Medicare.

The measures bar health plans or middlemen that manage pharmacy benefits from getting in between pharmacists and their customers. No longer can pharmacists be contractually prohibited from telling consumers when they would actually save money by not using their insurance plans.

Such head-scratching situations can arise because of convoluted deals between drug companies, insurers, middlemen and pharmacies.

Trump complained that drug prices are “way out of whack” and “way too high.” But a recent Associated Press analysis of brand-name prescription drug prices suggests repeated strong criticism from the president hasn’t had much impact. The analysis found it’s been business as usual for drugmakers, with far more price increases than cuts.

Health and Human Services Secretary Alex Azar said the bills give patients the right to know about ways to pay the lowest price.

Under pharmacy “gag” rules, pharmacists have been prohibited from proactively telling consumers when their prescription would cost less if they paid for it out-of-pocket rather than using their insurance plan. Pharmacists who disobeyed risked penalties that could impact their business.

Comments
Masthead Masthead
Editor & Publisher:
Managing Editor:
Senior News Editor:
Assistant Editor:
Editor at Large:
Investigations Desk:
Senior Political Correspondent:
Senior Editor:
Newswriters:
Front Page Editor:
Social Media Editor:
Editor for Prime & Special Projects:
General Manager & General Counsel:
Executive Publisher:
Head of Product:
Director of Technology:
Publishing Associate:
Front-End Developer:
Senior Designer: